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Redbox Instant Sets Price at $8 Month

The new streaming service will begin beta testing this month


A new video streaming service from DVD rental kiosk maker Redbox will be priced to compete directly with Netflix (NASDAQ:NFLX).

Redbox Instant by Verizon, a partnership between Verizon (NYSE:VZ) and Redbox parent company Coinstar (NASDAQ:CSTR) will beging beta-testing this month. The service will be priced at $8 a month, matching Netflix’s monthly streaming-only option, Forbes notes.

Trouble Is Looming for Cable TV Companies
Trouble Is Looming for Cable TV Companies

Shares of Coinstar surged more than 4% in Wednesday trading, while Verizon rose about 1%. Netflix shares soared about 7% despite the Redbox news.

The service will feature unlimited streaming of titles in the Redbox library. Redbox has acquired streaming rights to content from Viacom‘s (NASDAQ:VIAB) Paramount Pictures, Comcast’s (NASDAQ:CMCSA) NBCUniversal, Lionsgate (NYSE:LGF), Sony Home Entertainment (NYSE:SNE), Time Warner‘s (NYSE:TWX) Warner Brothers and the EPIX TV channel.

Available through a web-based platform, the service will also issue apps for mobile devices running Apple‘s (NASDAQ:AAPL) iOS and Google‘s (NASDAQ:GOOG) Android operating systems.

Subscribers will also receive four kiosk DVD rental credits per month. For $1 more a month, Redbox Instant subscribers will be able to use those credits to rent Blu-Ray disks.

Article printed from InvestorPlace Media,

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